USDMXN Up 527 Pips On Hourly Chart, 2 Day Up Streak Snapped; Breaks Below 200 Day Average

Hourly Update

(Last Updated September 10, 2020 16:14 GMT)

Currently, USDMXN’s rate is up 527 pips (0.25%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

USDMXN End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for USDMXN, which started today off at 21.3559, down 4034 pips 1.85% from the previous day. Relative to other instruments in the Forex asset class, USDMXN ranked 39th the previous day in terms of percentage price change. Below is a price chart of USDMXN.

USDMXN

USDMXN Technical Analysis

Moving average crossovers are always interesting, so let’s start there: USDMXN crossed below its 200 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 200 day average, which is 1892.7 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 10 days USDMXN’s price has gone down 6 them.

The View From Around the Web

Not much in terms quality buy/sell signals we’re seeing for USDMXN; just 2 sell signals and 1 buy signals. This imputes a buy/sell ratio of 0.5, which is bearish. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Tenemos una estructura consolidada en la moneda nacional, por el momento nos encontramos en un punto crítico en donde o sigue cayendo con fuerza hasta niveles de 20.50 o rompemos estructura en una temporalidad menor para comenzar el rally a lo alto del canal.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram